Royal Bank of Scotland v Greenshields [1914] ScotCS CSIH_1 (14 January 1914)

Royal Bank of Scotland v Greenshields [1914] ScotCS CSIH_1 (14 January 1914)

No specific question was put to the bank-agent requiring disclosure of the customer's full indebtedness, and no misrepresentation was proved; therefore, no duty of disclosure arose and the guarantee remains valid.

Citation
[1914] ScotCS CSIH_1
Parties
Pursuer: Royal Bank of Scotland; Defender: Greenshields (deceased, represented by representatives)
Jurisdiction
Scotland
Judgment Date
14 January 1914
Procedural Posture
Civil Appeal / Inner House Appeal From Outer House
Outcome
appeal allowed
Legal Topics
Guarantee, Misrepresentation, Duty of Disclosure, Banker Customer Relationship
Banking Law Contract Law Guarantee Misrepresentation Duty of Disclosure Banker Customer Relationship

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Parties

Royal Bank of Scotland

Pursuer

Greenshields (deceased, represented by representatives)

Defender

Procedural Posture

Civil Appeal / Inner House Appeal From Outer House

Legal Issues

  1. 1 Whether a bank-agent owes a duty of disclosure to an intending guarantor regarding a customer's total indebtedness
  2. 2 Whether misrepresentation or non-disclosure by the bank-agent vitiates the guarantee

Ratio Decidendi

No specific question was put to the bank-agent requiring disclosure of the customer's full indebtedness, and no misrepresentation was proved; therefore, no duty of disclosure arose and the guarantee remains valid.

Court Disposition

appeal allowed

Orders

  • Interlocutor of the Lord Ordinary recalled
  • Decree granted in favour of the pursuers (Royal Bank of Scotland) in terms of the conclusions of the summons